Text|**Produced by|The world's wealth.
These days, China Post Life Insurance is standing on the cusp of ** again.
Recently, the State Administration of Financial Supervision and Administration announced a batch of fines, and China Post Life Insurance (the full name of the company is "China Post Life Insurance Shares" is impressively listed, and it is alleged that there are 9 violations of laws and regulations.
China Post Life Insurance, which is "envious of others" because of its unique resources, has also fallen into the predicament of huge losses. In the first three quarters of this year, the company's net loss exceeded 10 billion yuan, ranking first in the industry.
All of this has attracted widespread attention from the outside world, but what is going on behind it?
Under the tone of strengthening risk prevention and control, the supervision of the financial industry is still based on the word "strict".
On December 1, the State Administration of Financial Supervision and Administration issued regulatory fines intensively. Among them, China Post Life Insurance was warned and fined 1.47 million yuan for 9 major violations of laws and regulations, and 4 relevant responsible persons were also fined, which attracted special attention.
Information on the punishment of China Post Life by the supervisory department.
According to the Administrative Penalty Information Disclosure Form, the main facts of China Post Life's violations of laws and regulations include: changing the company's business premises without approval;The company's internal management is not sound;Tier 2 capital bonds purchased are not subject to solvency regulatory rules for which the minimum capital is measured;Investment bank deposits are not in compliance with regulatory requirements;Imprudent bond investment, etc.
As you can see from this, there are mistakes that are almost at the level of "kindergarten". For example, the change of business premises is not approved, even for a small start-up company, it knows that it can only do such things after approval, why would such a large company as China Post Life Insurance be so negligent?
Obviously, the million-level fine reflects that China Post Life still has many deficiencies in compliance management. In addition to internal control management, the company also needs to strengthen solvency risk management.
According to the company's third-quarter solvency report, at the end of the third quarter of 2023, China Post Life's comprehensive solvency adequacy ratio was 156%, and its core solvency adequacy ratio was 86%. Firm.
The comprehensive risk rating results for the first and second quarters were all B.
China Post Life's solvency adequacy ratio indicators for each quarter in 2023.
What is the level of China Post Life's indicators?Let's take a look at the industry: according to data disclosed by the State Administration of Financial Supervision and Administration, at the end of the third quarter of 2023, the comprehensive solvency adequacy ratio of the insurance industry was 194%, and the core solvency adequacy ratio was 126%. Among them, the comprehensive solvency adequacy ratio of life insurance companies was 184%, and the core solvency adequacy ratio was 108%.
It can be seen that the relevant indicators of China Post Life Insurance are far lower than the industry average.
In fact, in the first quarter of 2022, the comprehensive risk rating result of China Post Life Insurance was still AA, but in the second quarter, it fell three notches to BB. In the first quarter of this year, the comprehensive risk rating was downgraded to B.
Can China Post Life Insurance "be ashamed and courageous"?It looks like there's some hope. In the solvency report for the third quarter of 2023, the company stated that it would "organize and carry out the identification, assessment, monitoring, early warning and reporting of seven types of risks, and convene the sixth meeting of the management risk management committee in 2023 to discuss and analyze the overall situation of the company's risk management, strengthen the overall management and control of comprehensive risks, and effectively improve the company's risk management capabilities." ”
Objectively speaking, entering 2023, stimulated by the reduction of the scheduled interest rate of life insurance products, the premiums of the life insurance industry have shown a good growth trend, but the drastic ** of the capital market has also formed a great drag on the investment income of life insurance companies.
Although the profitability of some life insurance companies is under pressure, the loss of more than 10 billion yuan of China Post Life Insurance is still a surprise to the industry.
The solvency report shows that in the first three quarters of this year, China Post Life Insurance lost 250.4 billion yuan, 37.7 billion yuan, 749.4 billion yuan, with a total loss of 1037.5 billion yuan, this loss is the first in the life insurance industry.
Is it due to a significant decline in income?Definitely. According to the data, China Post Life's premium income still increased during the same period. In the first three quarters, the company's cumulative premium income was 104.3 billion yuan, a year-on-year increase of 23%, and it is one of the seven life insurance companies with premiums exceeding 100 billion yuan.
Although the company did not disclose the reason for the loss, from the perspective of the industry as a whole, the decline in investment income is a major reason for the fluctuation of profits.
As of the end of the third quarter, China Post Life's return on equity was -4603%, with a return on total assets of -222%, with a return on investment of 143%, with a comprehensive return on investment of 402%。The company's average investment return in the past three years is 499%, which is clearly well below the previous average this year.
The main operating indicators of China Post Life.
In fact, in 2022, China Post Life's profitability will already be under pressure. The annual report shows that the company lost 2.6 billion yuan in the first three quarters of that year, reversed the net profit of 3 billion yuan in the fourth quarter, and only made a profit of about 400 million yuan for the whole year. Compared with the net profit of 1.4 billion yuan in 2021, profitability has fallen by 71% last year.
Does the company want to "turn things around" in the last quarter this year?We'll see.
In fact, in the second half of this year, China Post Life Insurance still has big moves on the investment side. In September, China Post Life Insurance took over all the equity and debt rights of Beijing Kunting Asset Management for 4.2 billion yuan. The main asset of Beijing Kunting is the COFCO Landmark project in Dongcheng District, Beijing.
Another piece of good news is that on October 30, the State Administration of Financial Supervision and Administration approved the opening of China Post Life Asset Management, a wholly-owned subsidiary of China Post Life Insurance, which is also the 34th insurance asset management company approved for opening in China.
There is a saying circulating in the bancassurance channel: "Those who get the postal service get the baninsurance".
It is understood that China Post Group Corporation has built more than 50,000 business outlets, and the Postal Savings Bank of China has nearly 40,000 business outlets. These business outlets in urban and rural areas across the country are the natural resource endowment behind China Post Life.
As a result, almost all of China Post Life's premium income comes from the bancassurance channel. In 2022, the company's premium income will be 91.4 billion yuan, while the total premium of the bancassurance channel will reach 90.8 billion yuan, accounting for 99%.
China Post Life Insurance is also trying to solve the chronic problem of single business channels.
In January 2022, AIA took a stake in China Post Life. The registered capital of China Post Life Insurance increased from 21.5 billion yuan to 28.6 billion yuan, and AIA subscribed for the new registered capital of 7.1 billion yuan. The transaction attracted 12 billion yuan, which is the largest capital increase and share expansion project in China's insurance industry.
After increasing the registered capital and shareholders, China Post Group holds 382%, and AIA's shareholding ratio is 2499%, becoming the second largest shareholder of China Post Life.
Shareholding structure of China Post Life.
Founded in Hong Kong in 1931, AIA is the largest independent listed pan-Asian life insurance group with over 90 years of insurance business. The company can be described as the "originator" of the insurance ** person system in Chinese mainland, and the insurance ** person system brought by it in 1992 subverted the traditional insurance counter sales model and promoted the first innovation of China's modern insurance industry.
The handshake between the two sides attracted a lot of attention at the time. According to China Post Life, in the future, AIA will provide professional support to China Post Insurance in terms of product development, technology, investment, risk management, and expansion and deepening of China Post Insurance's unique distribution potential.
Industry insiders also believe that China Post Life has always been based on the bancassurance channel, the company's new business value is low, AIA has obvious advantages in the individual insurance channel, and the combination of the two parties can help China Post Insurance expand its sales channels and promote value transformation.
However, after nearly two years, has the cooperation between the two been remarkable?China Post Life Insurance has not yet opened a new growth pole for the first person channel. Moreover, after the capital increase, the solvency adequacy ratio index of China Post Life Insurance is still under pressure, and now the company is struggling with losses.
In the future, how can China Post Life complement its resources with AIA and move towards the diversification of business channels?At present, there is still a long way to go.
end - Disclaimer: The information in this article does not constitute investment advice.